Bad investments
You go to school to get an education and because it’s the law. You go to college or university to get an education too? No, that isn’t it. To get a job? That’s right, and not just any job, a high paying one that utilizes your degree. Thats the ideal, too bad it almost never happens. On top of that, all that good money you thought you were making isn’t much better than the high school grads.
| Return on Investment | Public | Private |
| Initial Investment (college expenses) | $76,776 | $151,835 |
| Earnings Over 40 Year More Than High School Grad (subtracting out debt servicing) | $433,000 | $322,000 |
| Effective Interest Rate on Investment | 4.42% | 1.9% |
Now, if you take that same 78k you’d have spent on public university education and invested it, you’d have a lot more money than any college grad:
| Lifetime Earnings | High School | College (Public) |
| Earnings Over 40 Years | $1,202,791 | $1,788,885 |
| Investment Income ($76,776 at 7.5%) | $1,385,000 | 0 |
| Total | $2,587,791 | $1,788,885 |
I wish I had found this out before I graduated high school. Going to college for work could actually be the worst investment in your life. Don’t believe me? Hit the link at the bottom for the full article plus the math and data to back it up.
[tables via -MichaelRobertson.com ]
